Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1887-01-07

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themselves. 1t IL therefore cause for con-
graduation that so much has been realized in
| the way of rolief. Briefly outlined, there has
| been secured under this law through the
agency Of the commission, a free and open
market, with tho right OF unrestricted ship.
ment for grain on every line of railway In the
| state save ono; material reduction on all the
roads Of rates charged for the transportation
OF grain. live stock. lumber, wood and general
farm products, amounting III the aggregate to
| over ono million dollars per annum; d general
reduction OF all passenger tariffs to maximum
charge of three cents per mile, and q virtual
abo ition OF tho odious transit system, by an
| elimination Of Its Objectionable and burden
some features.
These results have been reached through
! the patient, persistent and prolonged efforts
Of the commission, involving al
RxHAUsTIvE INVESTIGATION
Of the subject Of railway transportation in its
many phases and to its remotest detail, and
elaborate illustration by com parison Of its rel
alive cost Us between different companies under
varied and diverse conditions. The facts do
veloped by this research fortified the commits
sion In the presentation OF Its demands upon
tho companies, and secured concessions which
otherwise 1t would hardly have been possible
to obtain. In but ono insta have the com.
mission had to resort to tho courts to enforce
its demands, and In this case the lower court
has decided In favor Of the law. The cause is
now pending the supreme court.
Minnesota has now fairly inaugurated q
policy respecting state supervision and control
Of railroad companies which, II sufficiently
strengthened, and wisely and firmly admins
tered, will lead, I believe, to such successful.
and just adj ustment OF the relations that
should obtain between these corporations and
the public, as Is possible under separate and
Independent state action. The problem can
not, however, reach solution entirely salts
factory, until the general government shall
supplement state action by the adoption Of q
federal policy, which shall have IN view the
determination Of questions relating to inter-
country, with marked unantmtty, IL demand
ing Of congress legislation to this end. 1t re-
mains to be seen how long adverse influences
shall postpone its enactment.
The commissioners recommend such amend
ments and changes In the law Is their exper-
fence and Investigations have suggested are
necessary to make 1t more effective. I be-
speak for them your hearty endorsement,
and l earnestly invoke your early action re-
specting the additional Regulation contem-
plated in the drafts Of laws they submit for
your consideration.
Clearly in my view. the commissioners should
be authorized 10 revise and amend the tariffs
Of the railroad companies respecting rates
char ged for transportation OF freight and pas
sengers. II upon complaint, or otherwise. Il
shall appear 70 the commission, after caleful
investigation, that such rates are In any respect
''unequal, unjust or unreasonable" 1t should be
authorized TO require and compel such changes
as shall make them equal. reasonable and
just. There can be no good ground Of OBJ
lection to this regulation upon the part Of the
companies themselves. Indeed, they should
rather wish to see 1t established. ss the pro-
cess Of lite enforcement would give oppor-
tunity for such vindication Of their equitable
policy respecting the pablic, as the facts in
each case would warrant.
The excessive and
FICTITIOUS CAPITALIZATION
Of he property of railway corporations is T.
proper subject for legislative consideration.
1t IL VIGOROUSLY the practice Of these COM
panies, after realizing from the sale Of their
ponds money sufficient TO build aud equip
their lines, to issue In addition stock to an
saaa greater sas no smo Ssse , wRss
ever, but appropriated rs a gratutty by the
syndicate controlling the franchises Of tho
company. To give these false issues Of &C.
curities real value, dividends must be earned
by the road and paid thereon. The practical
effect of this Is the preparation Of fraud
must be fixed high enough to realize net earn-
iugs sufficient to pay these dividends after
fixed charges are met. As rule, IL complaint
IL made that rates are high and that commo-
dities will not bear cost Of transportation, the
company responds that It Is charging only
what Is necessary to earn fair income upon
Its Investment, and perhaps refers to its sworn
statements made to the board Of commission.
ers Us 10 the amount OF such.
investment. which always includes
such over issue OF securities. This
practice does not require elaboration to cxpose
8 OPPRESSIVE and dishonest character, but 1t
Loudly calls for a remedy. The drafts for acts
v he iaai IN he
issuing Of false, fraudulent and part paid or
n paid shares OF stock OF railroad companies
An to ''regulate the proceedings OF railroad
Companies desiring to increase their capital
stOck," will protect the public against q.
growth Of the evil. The evident remedy, as
OF their revenues and dividends upon the basis
OF far md liberal estimate OF the actual cost
or value OF taeir prope ties.
The incorpora tlon int the fundamental law
of the state Of an amt ndment asserting the
nj p 'wer Of the state as TO corporate control,
IS re- recommendation Of the commissioners in
which cordially concur Though this prin-
ciple IL sustained by the courts 1t is not wholly
admitted by the corporations, AZ An authority
coming from the constitution 1t would COM
mand acquiescence.
The inbors OF the board under the law for
ton Of grain have resulted In the Inauguration.
of a system Of state inspection and weighing
which has
WORKED MOST SATISFACTORILY.
The grades established and rules adopted by
the board for the handling OF grain have
had the effect to remove the
cause for much of the CONF plant
ihal had existed among farmers and country
snippers, of irregularities and abuses respect.
ing the disposition Of their property. MiDne-
sofa grades of wheat are now the recognized :.
standard In eastern and European markets,
and the integrity OF our state inspection com.
mands the full confidence Of tho trade. In
doubtediy the adoption Of this system has
added appreciably to the market value Of on,
wheat and resulted In . ,lizipg much more to e
the producer than he would have received
aud rules Of inspection as first established
proved 80 satisfactory that any change in
them was generally objected to by farmers and
Goa LOU oe ho ev,r ~ IN